The auditors of India’s biggest carrier Jet Airways have issued a warning to the company to raise funds or generate cash flows in the future to meets its obligations, including financial support to its loss-making subsidiary JetLite.
In a report dated Nov. 11, Deloitte Haskins & Sells and Chaturvedi & Shah said raising money is crucial if Jet’s accounts have to be prepared on a “going concern basis” in the future.
In September, auditors of smaller rival Kingfisher Airlines had warned the carrier needed to infuse funds to continue as a “going concern”.
Jet, which enjoys nearly a quarter of the market share, swung to a net loss in September quarter, compared with a profit a year ago, hurt by rising fuel prices and a forex loss in the quarter.
“Jet is better relative to Kingfisher in terms of financial strength. I definitely think they will make a profit over the time and shore up their capital,” said an analyst with a local brokerage who requested anonymity.
The report was released to the stock exchange on Monday.